Shri B. Prasada RaoChairman & Managing Director, BHEL

to share the Company's Performance Highlights during 2010-11

Press Conference Address by

th4 April, 2011

Issued by

Corporate Communication, BHELJeevan Tara Building, 5, Sansad Marg, New Delhi-110 001

Phone : 23742886, 23365669, Fax : 23342769 E-mail : ccadhar@bhel.in

Bharat Heavy Electricals LimitedWebsite: www.bhel.com

Registered Office : BHEL House, Siri Fort, New Delhi - 110049, India.

Steering Change. . . Sustaining Growth. . .

P o w e r i n g P r o g r e s s . . . B r i g h t e n i n g L i v e s

T o u c h i n g E v e r y I n d i a n H o m e

Note : Company results for 2010-11 are provisional, subject to Audit

Koteshwar Units during flood

Koteshwar Units after Capacity Addition

2 3

Sustaining Growth. . .Steering Change. . .

based water treatment systems for power plants and

industrial sector – business for future

• Joint Working Arrangement with Abengoa, Spain for

Concentrated Solar thermal Power Plant (CSP) – business

for future

• Joint Venture formed with Govt. of Kerala and Kasaragod

unit of KEL acquired – for leveraging business in

transportation and wind segments

• Ranked as the number one company in terms of filing

patents in India by Economic Times Intelligence Group

• R&D expenditure at ` 1,005 Crore - 21% higher than

previous year

• CII-Thompson Reuters Innovation Award 2010 for

innovation & entrepreneurship

• 31% growth in BHEL's IPR capital taking the total to

1,438 patents/copyrights

• Established BHEL R&D Gateway at IIT Madras Research

Park Chennai – promoting research in Ultra Supercritical

power cycles and high temperature materials

• BHEL becomes first company in India to develop and

manufacture 1200 kV Transformers. The company has

also indigenously developed and manufactured 765 kV,

500 MVA transformer. 530 kN Disc insulators for 1200 kV

UHVAC transmission lines also developed for the first time

in the country

• BHEL synchronized/commissioned 9442 MW of power

plant equipment comprising domestic utility, captive/

industrial and in overseas market

• BHEL sets contributed 72% of the power generated in the

country in FY 2010-11

• For the first time, a thermal set (80 MW) equipped with Air

cooled Condenser configuration for Shiram EPC was

commissioned by BHEL- saving precious water resource

Technology Edge

Commissioning/Equipment Performance

Supercritical Thermal business to spur growth; Manufacturing Capacity to deliver 20,000 MW per annum on track

BHEL completed another successful year, which saw private as well public sector utilities and other customers reposing confidence in the company's capabilities.

First indigenously built 1200 kV, 180 MVA Transformer in India,manufactured by BHEL

First indigenously manufactured 600 MW TG set in the countryunder assembly

Highlights 2010-11

Supercritical Technology

Nuclear Business

Customer Confidence

Global Forays

New Initiatives

• Record orders of 7 nos. Boilers and 9 nos. Turbine-

Generators with supercritical parameters from public as

well as private sector utilities

• New rating of 700 MW supercritical thermal set introduced

with first order from KPCL- matching competition

• First-ever orders from a JV with a State Utility for 800 MW

supercritical thermal sets from Raichur Power Corporation

Limited

• Advanced Ultra Supercritical (Adv-USC) technology being

developed in association with Indira Gandhi Centre for

Atomic Research (IGCAR) and NTPC, as part of the

National Mission for Development of Clean Coal (Carbon)

Technologies – preparing for future growth. With this

initiative, India joins select band of countries working on

the development of this technology

• Order of first 700 MW Nuclear TG (2 sets) for KAPP 3,4

from NPCIL in consortium with Alstom – new rating

introduced

• Repeat order for 10 sets of 270 MW each from the

Indiabulls Group

• WBPDCL reposes confidence in BHEL by placing order for

Stage-II (2x500 MW) of the Sagardighi Project - Stage-I

was earlier sourced from Chinese

• Breakthrough order from PGCIL for the world's first + 800 kV 6,000 MW Ultra High Voltage Multi-Terminal DC

Transmission Link between North-East and Agra, in

consortium with ABB, Sweden

• Four orders in a row for captive power plant equipment

from Maruti Suzuki India Limited

• Export orders from 24 countries across five continents

• EEPC's Top Export Award for Project Exports for the

twentieth year in succession

• Highest-ever capital investment in a year - ̀ 1,771Crore

• Augmentation of manufacturing capacity from 15,000 MW

p.a. to 20,000 MW p.a. on track for completion by March

2012 - 82 machines out of 251 machines commissioned

so far

• Partnerships forged with GE India Industrial Private

Limited (GEIIPL) for providing cost-effective membrane-

Green Power Initiatives

Accolades

ORDERS INFLOW

• 210 sq. mts. of space grade solar panels and 28 space

quality batteries have been supplied to ISRO for their

space program, so far. During the year, ISRO launched

Carto2B and GSAT4 satellites equipped with BHEL's

24AH Ni-Cd batteries and solar panels respectively

• Highest-ever orders totaling to 8 MWp for eco-friendly

Grid-Interactive Solar Photovoltaic (SPV) Power Plants

were received from the Union Territory of Lakshadweep

and Indiabulls

• Prestigious SCOPE Award for Excellence and

Outstanding Contribution to Public Sector Management

(2008-09) presented by the H'ble Prime Minister,

Dr. Manmohan Singh

• BHEL employees won six Prime Minister's Shram Awards

including one Shram Bhushan and three Vishwakarma

Rashtriya Puraskars

• For the fifth year running, only PSU in Forbes Asia

'Fabulous 50' list of the best of Asia-Pacific's publicly-

traded companies with revenues or market capitalisation

of at least US$ 5 Billion

• NDTV Profit Business Leadership Award 2010 for

organizational excellence in the Engineering sector

BHEL secured record orders worth ̀ 60,507 Crore, during the

year, despite various challenges confronting the power sector

in recent times, At the end of the year, total orders in hand for

execution in 2011-12 and beyond, stand at about ` 1,64,130

Crore

• In the Power Sector business segment, BHEL secured

orders worth ̀ 46,393 Crore corresponding to 15,071 MW

in physical terms. Major highlights of the year include

orders for 9 nos. Turbine Generator sets and 7 nos. Steam

Generator sets for Units of 660/ 700/ 800 MW rating with

Supercritical parameters; repeat order from Indiabulls for

10 sets of 270 MW (Nasik Ph. II & Amravati Ph. II)

and first order for 700 MW nuclear TG sets (2x700 MW

KAPP 3&4)

Detailed Achievements 2010-11

Significant orders received in the Power

sector include:

Supercritical Thermal Sets

Sub-critical Thermal Sets

Gas Turbines

Nuclear Business

• Main plant equipment package for 2x800 MW Yeramarus

and 1x800 MW Edlapur supercritical power projects from

Raichur Power Company Ltd – a JV Company of BHEL and

the State Utility

• First order for 700 MW supercritical set from KPCL for

Bellary 3 (1x700 MW)

• 2x660 MW Turbine Generators from NTPC against bulk

tender

• 3x660 MW supercritical thermal sets from Bajaj

Hindusthan Ltd.

• ESP package orders for Nigrie (2x660 MW) from Jaiprakash

Power Ventures Ltd. and for Bara (3x660 MW) of Prayagraj

Power Generation Company Ltd. (Jaypee Group)

• Repeat orders from Indiabulls for 10 sets of 270 MW

(5x270 MW Nasik Ph-II & 5x270 MW Amravati Ph-II)

• 6 sets of 600 MW from Dainik Bhaskar Power Ltd., Visa

Power Ltd., APGenco and Korba West Power Co. Ltd.

• 2 sets of 500 MW for Sagardighi from West Bengal Power

Development Corp. Ltd.

• 2 sets of 250 MW for Barauni from Bihar State Electricity

Board

• 750 MW Combined Cycle Power Project of Pragati Power

Corporation Ltd. at Bamnauli

• Gas Turbine-Generator orders for Monarchak (100 MW)

from North Eastern Electric Power Corporation (NEEPCO)

and Rokhia (21 MW) from Tripura State Electricity

Corporation Ltd.

• First order for 700 MW Nuclear TG package from

India's first indigenously built 9FA (250 MW ISO) Gas Turbine setmanufactured by BHEL

4 5

Sustaining Growth. . .Steering Change. . .

Electric Locomotive (25 kV AC, Type WAG 7)

• Maiden order for solar cells from Hong Kong & Turkey

– Entry into new market – For the first time, BHEL secured

orders for supply of solar cells to Hong Kong & Turkey

• Order for Control Equipment from USA – BHEL secured

order for supply of Bus Extender Modules from Metso

Automation, USA

• Continued focus on After Sales Services led to orders

for Spares & Services from UAE, Bangladesh, Bhutan,

France, Indonesia, Kazakhstan, Sri Lanka, Libya, Malta,

Malaysia, New Zealand, Nepal, Oman, Saudi Arabia,

Thailand and Yemen.

Aimed at maximising business through mutually beneficial

strategic partnerships, BHEL entered into the following tie-ups

during the year

• BHEL has entered into a manufacturing cooperation

agreement with GE India Industrial Private Limited

(GEIIPL) to address the requirement of state-of-the-art

water treatment plants for power plants, industry and

municipal corporations

• BHEL has signed an agreement with M/s. Abengoa, Spain,

the leader in solar and other energy-related projects, to

develop state-of-the-art Concentrated Solar Power projects

in India. The agreement will enable both the organizations to

leverage their capabilities in offering EPC solutions for

Concentrated Solar thermal Power (CSP) projects in India,

as well as give them the opportunity to explore cooperation in

energy projects in other parts of the world

STRATEGIC BUSINESS INITIATIVES

Significant orders received in International

business include

• Single largest export order for Gas Turbine-based

Power Project – Further strengthening its foothold in

Yemen, BHEL secured a prestigious order for the

4x168 MW Gas Turbine based Marib-II Power Project. This

is the largest ever order for an overseas gas turbine based

power project

• Yemen - Entry into new market – Earlier, BHEL

successfully made its maiden entry in Yemen by securing

orders for the supply of motors

• First ever order for motors from Kenya – For the first

time, BHEL secured an order for supply of motors to

Mombasa Cement Ltd., Kenya• BHEL has formed a JV with the Govt. of Kerala and a

majority-owned JV company named BHEL Electricals

Machines Limited has been registered in Kerala which has

taken over the Kasaragod unit of KEL. In addition to the

present range of Alternators, other complementary

products like LT motors, Wind Electric Generators'

Alternators and traction equipment for Indian Railways, are

proposed to be taken up for manufacture by the JV

• A collaboration agreement was entered into with Nuovo

Pignone (part of GE Oil & Gas), Italy, for the manufacture of

centrifugal compressors. This will further enhance BHEL's

capability to address the market requirement of higher size

compressors for refinery, fertilizer, petrochemical, pipeline

and other applications

• BHEL synchronized / commissioned 9,442 MW of power

plant equipment during the year inclusive of 8,108 MW

Utility, 987 MW Captive/Industrial sets in the country and

347 MW in overseas markets. This included 11 nos. of

500 MW and 1 no. of 525 MW

• A major milestone of the year was the commissioning of

four power plants in overseas markets. While power

projects were commissioned in Bangladesh, Libya, Oman

and Nepal; Hydro generator, Substations & Transformers

were commissioned in Tajikistan, Ethiopia and Myanmar

respectively

• Hindustan Zinc Ltd., Dariba Unit-2 (80 MW) reached full

load within 6 hours and 6 minutes of its synchronization

• The installed capacity of BHEL supplied Utility sets went

up to 98,064 MW which is 62% of the country's total

installed capacity

PROJECT COMMISSIONING

CMD, BHEL and CEO, Abengoa Solar exchanging agreementto develop Concentrated Solar Power Projects in India

1x490 MW Power Project commissioned at Dadri

NPCIL for KAPP (2x700 MW)

• Complete overhauling of 1000 MWe LMZ make

Nuclear Steam Turbine from NPCIL Kudankulam

• R&M of Kopili Hydro plant of NEEPCO, the only order

finalised in the country for R&M of hydro plants

• In its Industry Sector business segment also, BHEL

secured orders worth ` 11,405 Crore for a wide

range of products and systems for application in

Captive Power, Transportation, Transmission, Oil &

Gas, Renewable Energy and other industrial sectors

• Breakthrough order for the world's first + 800 kV 6,000 MW

Ultra High Voltage Multi-Terminal DC Transmission Link, in

consortium with ABB, Sweden

• 3x150 MW Boiler Turbine Generator package with single

cylinder reheat machines from India Power Corp. Ltd.

Haldia

• 2x30 MW STG & 2x220 TPH Utility Boilers on EPC

basis from ONGC Petro Additives Ltd. (OPAL), a JV of

ONGC & GAIL

• State-of-the-art propulsion equipment for 6000 HP Electric

Locomotives and 1400 HP AC EMUs from Indian Railways

amidst stiff competition from international suppliers

• 198 sets of Electrics for conventional AC EMU/DEMU and

588 Traction motors from Railway Board and Indian

Railways manufacturing units

• 11 nos. 700 HP Diesel Electric Shunting Locomotives from

JSW Steel Ltd.

• Highest-value single order for HT Motors finalized in the

country so far, for 20 nos. 6 MW 4P SCIMs for special

R&M and Services:

Significant orders received in the Industry

Sector include

SPV Power Plant, Karnataka

coolant pump application of 700 MW sets at NPCIL's

RAPP & KAPP

• 124 motors for IOC's Paradeep refinery including 110

flame proof motors

• Three Turbo Blower Packages with Steam Turbine Drive

from Bhilai Steel Plant

• Compressors from NFL Bhatinda, Nangal, Panipat, GNFC

Bharuch and BPCL Mumbai and CO2 Compressor

revamp from NFL Vijaipur

• Highest-value order for supply of Well Heads & X-Mas tree

valves from ONGC Bassein & Satellite Assets

• Integrated Platform Management System for an Air

Defence Ship (Indigenous Aircraft Carrier) being

manufactured in India for the first time. The order was

received against stiff competition from global giants

• 36 Transformers totaling to 4078 MVA from Indiabulls

• Order against international competition for 6 nos. of India's

largest rating state-of-the-art Dry Type Transformers from

Bluestar, for Reliance Power's Sasan project

• 220 kV substation and associated transmission lines

from DPL

• 4 nos. 63 MVAr Shunt Reactors at various substations from

KPTCL

• In International Business, the outlook remains cautious

and the recovery after the global meltdown has not been

able to create a positive environment for infrastructure

investments. In the oil and gas sector, most companies

have announced cutbacks in capital spending, as well as

project deferments and cancel lat ion. Recent

developments in the Arab world have also adversely

affected business prospects in BHEL's traditional markets.

In spite of such challenges, BHEL was able to sustain its

exports momentum with a physical export order inflow of ̀

3,738 Crore from 24 countries spread over five continents.

The year marked significant forays in new markets and

new product areas.

CMD, BHEL & Mr. John Flannery, President and CEO, GE-India, exchanging Agreement documents for Water Treatment Equipment and Systems

6 7

Sustaining Growth. . .Steering Change. . .

systems, BHEL has designed and developed high

efficiency passivated interface (PI) hetero junction solar

cells on full size (125 mm pseudo-square), mono

crystalline silicon wafers. With process step optimisation,

an efficiency as high as 16.9% have been achieved. This is

among the first few best efficiencies reported so far

internationally for these type of cells. Following this

development, steps will be taken towards batch production

of cells and modules and subjecting the modules to

qualification tests

• Reinforcing its commitment to optimum utilization of

natural resources as well as its concern for the

environment, BHEL has developed a dynamic classifier

system. The system improves classification efficiency of

the pulveriser and provides better particle size control

enabling availability of uniform coal size to the burners

leading to improvement of combustion efficiency of the

boiler and reduction in the NOx emission from the boiler.

The new dynamic classifier system has been

commissioned at Dr. Narla Tata Rao Thermal Power Plant,

Vijayawada

• Consistently offering tailor-made designs to suit customer

needs, BHEL has developed a more reliable 500 kW, 300

rpm brushless exciter has been developed to cater to a

range of hydro generators from for 16 MW to 60 MW rating.

This opens up vistas to cater to a wider range of hydro

generators and is also suitable for retrofit jobs in BHEL-

make hydro generators. Field trials at Devighat Hydro

Power Station in Nepal have commenced and BHEL plans

to develop brushless exciters for hydro generators up to

250 MW as the next step

• Consistently offering tailor-made products & designs to

suit customer needs, BHEL has developed & installed a

2.5 MVAr STATCOM for controlling quality of power and to

reduce voltage flicker during operations of the electric arc

furnace (EAF) at the Bhilai Steel Plant. Voltage flicker and

harmonic currents induced by EAF operations affect the

performance of sensitive electronic equipment connected

to the distribution bus of the plant and other consumers

linked to subject distribution systems. BHEL's STATCOM,

configured for EAF, increases steel productivity, reduces

electrode consumption and reduces peak demand

• Aimed at establishing dedicated infrastructure for

developing high and ultra high voltage gas insulated

transmission equipment, BHEL is establishing an Ultra

High Voltage (UHV) Laboratory for gas insulated

substation (GIS) equipment at its Corporate R&D division,

Hyderabad. The facility will also promote development and

training of BHEL personnel in design, evaluation

processes and allied technologies specific to gas insulated

transmission equipment. It will comprise two distinct

functional components – a high voltage di-electric test

facility, and a dust-free design and assembly area

• 2x500 MW for Mejia

• 1x525 MW for Maithon

• 1x500 MW for Kakatiya

• 1x500 MW for Jhajjar

• 1x500 MW for Korba

• 1x500 MW for Farakka

• 1x500 MW for Khaperkheda

• 1x500 MW for Simhadri

• 1x500 MW for Kothagudem

• 1x490 MW for Dadri

• 1x250 MW for Chhabra

• 1x250 MW for Raichur

• 1x250 MW for Santaldih

• 1x210 MW for Rayalaseema

• 2x125 MW for Surat Lignite

• 2x125 MW for Barsingsar

• 2x250 MW GTG for Pragati

• 21 MW GTG for Baramura

• 2x100 MW Hydro sets for

Koteshwar

• 2x96 MW Hydro sets for

Allain Duhangan

• 2x50 MW Hydro sets for

Kuttiyadi

• 3x40 MW Hydro sets for

Sewa

• 1x157 MW GTG in Libya

• 1x126 MW GTG in

Bangladesh

Major power projects synchronized/ commissioned included:

• 2x26 MW GTG in Oman

• 1x120 MW for Tata

Jojobera

• 2x110 MW GTG for

Vadinar Power Supply Co.

• 2x80 MW for HZL Dariba

• 1x80 MW for Shri Ram

EPC

• 1x30 MW GTG for IOCL

• 3x33 MW STG for BORL

• 1x43 MW STG for

Arasmeta

• 1x43 MW STG for Century

Pulp & Paper

• 1x37 MW STG for IOCL

• 1x33 MW STG for Shyam

DRI Power

• 1x28 MW STG for

Krishnaveni Sugar

• 1x25 MW STG for ACC

Wadi

• 1x25 MW STG for ACC

Chanda

• 1x25 MW STG for Visa

Steel

• 1x18.5 MW STG for Nalco

Damanjodi

EQUIPMENT PERFORMANCE

• During the year, BHEL-built power generating sets

generated an all-time high 501 Billion Units of electricity

which was 72% of the total power generation in the country.

• Plant Load Factor (PLF) of BHEL built thermal sets was

1.4% higher than the national average.

• BHEL built thermal sets achieved an impressive Operating

Availability (OA) of 86%. The same was 88.3% for BHEL

make 200-500 MW thermal sets, which form the backbone

of the country's thermal generating capacity

CUSTOMER FOCUS

TECHNOLOGY DEVELOPMENT

• BHEL reinforced its commitment to providing prompt and

efficient customer service aimed at facilitating

uninterrupted power supply and keeping power plants in

good running condition. During the year, BHEL overhauled

120 utility/captive sets.

• BHEL responded to customer's call and completed the

rehabilitation work of the flood-ravaged Koteshwar HEP of

THDC in a record time of just five months. The plant was

not only rehabilitated but capacity addition of 2x100 MW

was also achieved.

• Responding to the customer's call, BHEL took up on war

footing and completed the refurbishment and re-

commissioning of Oil Rig Kamadhenu of ONGC

Rajahmundry in a record time of 98 days against a normal

schedule of 6 months.

• BHEL's products and systems are technology intensive

and R&D/technology development is of strategic

importance to the company. During the year, BHEL

invested ` 1,005 Crore on R&D efforts – 21% higher than

the previous year.

• A turnover of ̀ 7,758 Crore was achieved through products

and systems developed in-house, an increase of 15 % over

the previous year.

• BHEL also filed 303 patents and copyrights, enhancing the

company's intellectual capital to 1,438 patents and

copyrights filed, which are in productive use in the

company's business. The year saw a massive growth in

grant of patents and copyrights. A total of 91 patents and

copyrights were granted during the year. Currently, 532

patents & copy rights are in force.

• BHEL won the coveted CII-Thompson Reuters Innovation

Award 2010 in the 'Hi-tech Corporate' category. The award

recognizes BHEL's innovation and entrepreneurship in

India based on number of patents and efficiency and

impact of innovation as measured by patent citations.

2xFrame 9E GTG order under execution at PDO Amal site in Oman

Brushless Exciter developed at BHEL's R&D Centre installedat Devighat HEP, Nepal

Instituted by CII and Thompson Reuters, the world's

leading source of intelligent information for businesses and

professionals, the Indian Innovation Awards have been

designed to recognize innovation and entrepreneurship in

India and are awarded to organizations that represent the

new spirit of innovation in India.

• Significantly, BHEL was ranked as the Number One

company in terms of filing patents and the second highest

investor in R&D in India by The Economic Times

Intelligence Group (ETIG)

• As part of its endeavour to offer the most contemporary

products & technologies to customers, BHEL has become

the first company in India to indigenously develop and

manufacture 1200 kV transformers. BHEL has

successfully manufactured 1200 kV, 180 MVA test

transformer to be used as a testing transformer in the UHV

Lab. BHEL has also developed and manufactured 1200 kV

Capacitor Voltage Transformer (CVT) for the 1200 kV test

transmission line at Bina, which is a stepping stone for the

company in the field of UHVAC Transmission systems. 530

kN Disc insulators for 1200 kV UHVAC transmission lines

have also been developed for the first time in the country.

Besides, the company has indigenously developed and

manufactured 765 kV, 500 MVA transformer which will be

put for field trial at Power Grid Sub-station, Wardha

• Aimed at enhancing efficiency as well as revenues for

hydro utilities, BHEL has developed a hydro power plant

equipment maintenance management system (MMS) - a

maintenance software that provides vital support in

ensuring continuous power generation while minimising

overhead costs due to downtime, repairs and

replacements. MMS ensures achievement of long-term

objectives of the plant through effective and efficient

maintenance scheduling and other retrieval functions.

Major utilities have already made the inclusion of MMS

package mandatory in all their tender documents. The

system is being supplied to NHPC for installation at Sewa

HEP.

• For the benefit of its customers by way of developing

effective control systems for its products, a compact and

cost-effective digital online monitoring and control system

(OLMCS) for power transformers has been developed and

tested. The unit can measure and monitor winding

temperatures, electrical parameters, moisture and gas-in-

oil, and provides alarm signals along with supervision of

the operating condition and estimation of remnant life and

controlling overload of the transformer. The system helps

save energy and maintains voltage profile and has been

type-tested as per international standards

• Continually striving to improve the economies of solar PV

Some of the significant developments during the year include:

8 9

Sustaining Growth. . .Steering Change. . .

• In line with its developmental work in futuristic areas, BHEL

is establishing a Centre for Nano Technology (CNT) at its

Corporate R&D division at Hyderabad. The facility will

explore the application of nano materials in products and

systems relevant to BHEL. Material development for

applications like power plant components, nano structured

wear-resistant coatings, electrical insulating materials,

solar cells, carbon nano tube applications, nano fluidics,

fuel cells and sensors, will be studied at this facility.

The CNT is being established to carry out cutting-

edge R&D and make BHEL future ready in the areas of

ultra supercritical power and renewable energy

• BHEL continued its tradition of contributing to the country's

space program - 210 sq. mts. of space grade solar panels

and 28 space quality batteries have been supplied to ISRO

for their space program, so far. During the year, ISRO

launched Carto2B and GSAT4 satellites which are

equipped with BHEL's 24AH Ni-Cd batteries and solar

panels respectively.

• Highest ever capital investment in a year – the company

made an investment of ` 1,771 Crore during 2010-11

towards augmentation of manufacturing capacity and

modernization of facilities in manufacturing units and at

power project sites

• Focused attention was given on rebuilding and retrofitting

of existing facilities to enhance their life, accuracy and

productivity through an additional investment of ̀ 58 Crore

• BHEL had earlier enhanced its manufacturing capacity to

15,000 MW of power equipment per annum. The

company's augmentation programme to 20,000 MW per

annum by March, 2012 to meet the power requirement of

the Twelfth Plan and beyond, is on track

• In line with changing market requirements, the knowledge

and skills of BHEL employees are continuously upgraded.

Developmental programmes for over 15 mandays per

employee were conducted during the year. In addition,

CAPACITY AUGMENTATION & ASSET

MODERNISATION

HUMAN RESOURCE

1,389 customer personnel were trained at various

manufacturing units.

• Manpower is being ramped up in a commensurate and

timely manner and 3658 persons have been recruited in

2010-11. With this, 15,606 nos. executives, supervisors

and workmen have been recruited during the four year

period 2007-11

• An integrated Human Resource Management System

was implemented during the year which aims at

reaching out to internal stakeholders on real time basis

and redefining the role of the HR function as a strategic

partner in business, through process standardization,

optimization and seamless enterprise integration. The

employee-centric web-based Employee Self Service

(ESS) facility has now been extended to all Executives

and Supervisors for easy and instant access to

employee data as well as corporate information.

• Industrial Relations continued to remain cordial

contributing to production and productivity. Thrust on

participative culture continued during the year through

the apex level bipartite forum, 'Joint Committee'.

• BHEL was awarded the 'Talent Innovation Award' at the

Asia Pacific HRM Congress held in Bangalore

• As part of its Corporate Social Responsibility (CSR),

during the year, BHEL undertook socio-economic and

community development programmes in villages and

communities located in the vicinity of its manufacturing

plants and project sites spread across the country. Focus

is on health, environment enrichment, hygiene,

education, community development, self empowerment,

water conservation, providing potable water, conducting

health camps for diagnostic, medicine distribution for

common ailments, etc.

• As a contribution towards helping in meeting the nation's

requirement of skilled manpower, BHEL has adopted

various ITIs under the Government of India's PPP

scheme. These include ITIs at Latur, Khandwa,

Khakinar, Peramvular and Haridwar.

CORPORATE SOCIAL RESPONSIBILITY

• The Kabiguru Industrial Training Centre, set up by BHEL

in partnership with DVC and Coal India at Bolpur,

West Bengal, has commenced operations and Fitter

trade course commenced with 42 students including 2

girls. Further, trades of Welder, Plumber, Cutting &

Tailoring and Beautician (mainly for girls), are slated to

begin from the August-2011 session.

• Reaching out to the distressed victims in the flood-

ravaged areas of Ladakh, Andhra Pradesh and

Karnataka, BHEL has made a humble contribution to

help alleviate their hardship.

• As part of the United Nations' Global Compact

Programme on CSR, the company continued to play a

lead role in promoting the set of core values enshrined in

its ten principles on human rights, labour standards,

environment and anti-corruption.

• BHEL was awarded the 'India Shining Star CSR Award'

for outstanding work in the CSR sphere in the Capital

Goods sector' at the 'CSR thought leadership conclave'

organized by Wockhardt Foundation.

• As part of social commitment, 6,819 Act Apprentices

were trained in the company. In addition, 8,878 students/

trainees from various professional institutions

underwent vocational training.

• Continuing its winning streak in the CII Exim Award

Scheme for business excellence as per the globally

recognized model of European Foundation for Quality

Management, four out of five BHEL units that

participated in the CII-EXIM Business Excellence award

scheme got recognition certificates from CII. BHEL's

Heavy Power Equipment Plant at Hyderabad won the

'Commendation for Significant Achievements in TQM'.

The company's Boiler Auxiliaries Plant at Ranipet,

Electronics Division at Bangalore and the High pressure

Boiler Plant at Trichy received 'Commendation for Strong

Commitment to TQM'.

• 33 Quality Circle case studies were presented by

7 BHEL manufacturing units at the International Quality

Circle Conference (ICQCC – 2010) held in Hyderabad.

BHEL units won 21 Gold and 11 Silver Medals for their

case studies.

• BHEL continues to actively contribute to the national

effort for developing and promoting renewable energy

based products especially in the context of Jawaharlal

Nehru National Solar Mission. Significantly, the area of

megawatt size grid connected SPV power plants, four

orders for SPV power generation plants totaling to

8 MWp were received by BHEL during the year. These

included orders from the Union Territory of

QUALITY

GREEN INITIATIVES

Lakshadweep for Augmentation, Renovation and

Operation & Maintenance of SPV plants at various

Islands (aggregate 2.15 MWp) and 6 MWp orders from

Indiabulls for projects at Bareilly & Nagpur

• The National Solar Mission aims to achieve 20,000 MW

through grid-connected solar power plants by March,

2022. With the aim of providing EPC solutions in the

concentrated solar thermal area, BHEL has signed

an agreement w i th Abengoa , Spa in , the

European leader in solar and other energy-related

projects.

• BHEL continued with the completion of several

Environment Improvement Projects (EIPs) as its

commitment towards environment conservation. Major

EIPs included plantation of 29 lakh trees in and around

manufacturing units / project sites, 110 rainwater

harvesting projects and energy & resources

conservation projects. These projects are aimed at

enriching the environment, conservation of precious

resources like energy, water, fuel oil, coolant, lubricant,

besides instal lat ion of proper systems for

storage/handling of chemical waste and using state-of-

the-art technologies.

• BHEL's first Sustainability Report 2009-10 on the

Environment, based on Global Reporting Initiative (GRI)

guidelines with third party assurance award was brought

out during the year. The report reflects the company's

transparent thrust/ approach towards Sustainable

Future/ Growth.

Continuing its tradition of bagging prestigious national/

international awards, the organisation and its employees

won several awards during the year. Notable among these

included;

• BHEL was honoured with the prestigious SCOPE Award

for Excellence and Outstanding Contribution to Public

Sector Management (2008-09) in the Large Scale PSE

ACCOLADES

CMD, BHEL receiving the SCOPE Award for Excellence & Outstanding Contribution to Public Sector Management from the

Prime Minister of India, Dr. Manmohan Singh

Boiler-drum shop at BHEL Tiruchirappalli

Medical camp being organised by BHEL as part of CSR initiatives

10 11

Sustaining Growth. . .Steering Change. . .

Category. The Award was presented by the Hon'ble Prime

Minister, Dr. Manmohan Singh to CMD, BHEL.

• BHEL has won the IEI Industry Excellence Award 2010 for

Overall Business Excellence and Industry Practices from

the Institution of Engineers (India).

• NDTV Profit Business Leadership Award 2010 recognizing

organizational excellence in the industry vertical of

'Engineering'.

• Maximum number of 7 ICWAI National Awards for

Excellence in Cost Management, among public and

private sector companies for 2009. BHEL was awarded the

recognition for the fifth successive year, having won the

awards earlier for 2005, 2006, 2007 and 2008.

• For the fifth consecutive year, BHEL's performance was

recognized by the prestigious publication Forbes Asia,

which featured BHEL in its sixth annual Fabulous 50 list of

the best of Asia-Pacific's publicly-traded companies with

revenues or market capitalization of at least US$ 5 Billion,

having highest long-term profitability and sales & earnings

growth. Notably, BHEL is the only Indian PSU to figure on

the elite list, since the list was conceived.

• Six Prime Minister's Shram Awards including one Shram

Bhushan and three Vishwakarma Rashtriya Puraskars.

• 1 National Safety Award to BHEL's Trichy unit for

outstanding achievements in terms of longest accident

free period and lowest accident frequency rate at their

works.

• EEPC's Top Export Award for Project Exports for the

twentieth year in succession.

• Business Bhaskar India Pride Growth Leader of the Year

Award for consistently recording high growth and a huge

order book going forward.

• Enertia Award 2010 for manufacturing excellence and

scale up in power generation equipment and auxiliaries.

• India Power Award for Equipment Manufacturing and for

electrifying Lakshadweep Islands with Solar Power from

Council of Power Utilities

• Golden Peacock Award for Occupational Health & Safety

2010 from the Institute of Directors for significant

achievements in the field of Occupational Health & Safety.

• Safety Innovation Award 2010 from the Institution of

Engineers (India).

• Mr. B. Prasada Rao, CMD, BHEL was awarded the

Distinguished Fellow Award 2010 from the Institute of

Directors. The award is given annually to Corporate

Leaders and top Government officials for their outstanding

contribution in the field of Corporate Governance and

Corporate Social Responsibility.

• BHEL employees, Dr. Kulvir Singh and Dr L.N. Satapathy,

both from BHEL's Corporate R&D division, brought laurels

to BHEL in individual categories. While Dr. Singh was

selected as the Metallurgist of the Year 2010 by the Union

Ministry of Steel and Indian Institute of Metals, in

recognition of his significant contribution in materials

development for steam and gas turbines as well as for

remnant life assessment (RLA) studies; Dr. Satapathy was

awarded the Prof. Sasadhar Ray Memorial Award 2010 for

Industrial Excellence by the Indian Ceramic Society in

recognition of his valuable contribution the field of

ceramics/whiteware ceramics.

• Emerging market economies including India have clearly

been the engine of the global recovery in recent times.

However, the sharp increase in oil prices as a result of the

turmoil in the Middle East and North Africa is adding

uncertainty to the pace of global recovery. In the domestic

context, both Central Statistical Organization and RBI

estimate the GDP growth to be 8.6 per cent for 2010-11.

• BHEL is actively pursuing several opportunities for

sustaining future growth. These include:

• Transportation business where BHEL is participating in the

tenders for setting up factory for Electric Loco components

at Dankuni, West Bengal and Diesel Loco factory at

Marhowra, Bihar respectively. The company has already

received breakthrough orders for State-of-the-art

propulsion equipment (IGBT based) for 6000 HP Electric

Locomotives and 1400 HP AC EMUs . BHEL is already

executing an order for 200 numbers of 5,000 HP 25 kV AC

Mainline Electric Locomotives (Type WAG -7) for Indian

Railways.

• Nuclear business where in addition to supplying steam

generators for new rating 700 MWe Nuclear sets BHEL has

entered into a tripartite JV with NPCIL & Alstom for

conventional island of Nuclear Projects for 700 MWe &

above.

• Solar business where the company's has entered into a

Joint Working Arrangement for Concentrated Solar

thermal Power Plant (CSP) and the Strategic Alliance with

BEL for formation of JV for setting up manufacturing facility

(240 MW) for silicon wafers, solar cells & modules.

• Transmission business where BHEL has entered into a

Strategic Alliance with Toshiba, Japan to establish a JVC to

address T&D business in India and other mutually agreed

countries. The JVC will cover equipments and projects in

LOOK AHEAD

Agenda for Growth & Leadership

• Over 1,15,000 MW worth equipment supplied worldwide

• Footprint in over 70 countries across 6 continents

• BHEL-built equipment light up 3 out of 4 homes in India

• Manufacturing capacity enhancement to 20,000 MW p.a. by March, 2012

• On track to meet Strategic Plan 2012 target of US$ 10 billion by 2011-12

H'ble Union Minister for HI&PE Shri Praful Patel & H'ble Minister of State for HI&PE Shri A. Sai Prathap interact with CMD, BHEL and other Board Members

EHVAC & UHVAC range including 765 kV transformers

and reactors & GIS, in addition to other products and

systems.

• Water business where BHEL has entered into a

manufacturing associate agreement with GE India

Industrial Private Limited (GEIIPL), for Water Treatment

Equipment. The company will be able to provide more cost-

effective membrane-based water treatment systems for

power plants and industrial sector for all type of input water

like sea water, brackish water and waste water.

• Infrastructure financing company which will enable BHEL

to finance power projects by providing funding support to

attract potential customers & optimize returns on cash

reserves.

• The company continues its focus on growth strategies viz.

Capacity Enhancement, Accelerated Project Execution,

Product Cost Competitiveness & Quality, Diversification,

Engineering & Technology and People Development to

sustain its leadership in the power sector and capture

growth avenues in emerging areas.

• BHEL continues to invest in manufacturing capacity

enhancement from 15,000 MW to 20,000 MW by

March 2012, in order to deliver customers' requirements

in a sustainable way.

• In the company's quest to make its supply chain agile and

accelerate project execution initiatives like vendor base

expansion, outsourcing, advanced manufacturing action,

rate contracts, deployment of additional tools and plants,

global sourcing and away centre fabrication, etc., will

remain focus areas.

• Capability building initiatives like Lean Manufacturing

(LM), Design-to-Cost (DTC) and Purchase-Supply-

Management (PSM) in identified product areas across the

company would enable the company remain cost

competitive.

• BHEL will continue to excel in innovation-led business

strategy to ensure that the company is at the forefront of

industry developments and continually improves products

and services.

• The company is on track to meet the Strategic Plan 2012

target of US$ 10 Billion by 2011-12.

• BHEL has commenced its '7th Corporate Plan' exercise to

formulate the company's 'Strategic Plan 2012-17' to

address market challenges and enable the company enter

next level of growth.

BHEL's Milestones

• Capacity Enhancement

• Accelerated Project Execution

• Product Cost Competitiveness & Quality

• Diversification

• Engineering & Technology

• People Development

The above performance is a result of the high level of commitment & outstanding performance of a team of 46,748 dedicated

employees and the confidence reposed by BHEL's stakeholders including Government of India. I thank my fellow Directors on the

Board, all my colleagues, stakeholders, the Department of Heavy Industry and our friends from the media for enabling BHEL to set

new performance benchmarks.